Search
 
Best Practices

Bring Clarity to FX Gain/Loss

The FX Gain/Loss line is the black hole of many companies' financial statements. Here's how to get a handle on what's driving currency impacts to the bottom line.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
When financial statements hit the C-suite, they’re often accompanied by detailed analyses explaining what impacted cost of sales, what caused any revenue shortfalls, and why operating expenses exceeded budgets. Explanations of these metrics, however, are often interrupted by pointed questions from senior management: “What happened in foreign exchange? And what the heck caused that FX loss?” An executive with these questions usually has to wait for the answers.

The FX Gain/Loss line on financial statements is poorly understood by most finance and accounting professionals. In fact, it’s frequently the only earnings line without Sarbanes-Oxley controls a decade after that law passed and two decades after the COSO framework was released.

Recommended Stories

Corporate America Chips away at $350 Billion Debt Problem

Caleb Mutua |

“You entered the pandemic with dozens of U.S. high-grade companies carrying around $1 trillion of debt in aggregate, pledging to pay down debt or grow their way into lower leverage.” That’s going to be hard in this economy.

Biden Plan Sets Tax Penalties for Offshore Profits

Jennifer Epstein |

Proposal would close what the Biden campaign calls “loopholes” in Trump tax law, with goal of encouraging businesses to bring operations back to the United States.

Locking in Low Interest Rates

Treasury & Risk Staff |

Treasury teams should consider these three factors before using derivatives to hedge against the possibility that rates will rise.

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.